Indian shares seen higher on economic package hopes

BANGALORE, Dec 30 (Reuters) - Indian shares are seen
surging on Tuesday on expectations of a stimulus package to
boost the flagging economy, with mostly higher Asian markets
supporting investor sentiment.

Shares in Satyam Computer Services (SATY.BO) will be
watched after three more directors resigned from the
outsourcer's board even as the firm said it would consider more
options to improve shareholder value and corporate governance.
[ID:nBOM236713]

The embattled company, hit by accusations of lack of
transparency after a botched attempt to buy two construction
firms in which Satyam management held stakes, has called a
board meet on Jan. 10 to consider how to shore up investor
confidence.
"The mood seems to be a bit upbeat in the short-term and the
expectation of an economic package is growing now," said Arun
Kejriwal, a strategist with research firm KRIS. "But the fact
that we are at year end, trade volumes will be lower."

Montek Singh Ahluwalia, the deputy head of the Planning
Commission, said lower inflation and slowing economic growth
have created scope for further easing in monetary policy.

The main 30-share BSE index .BSESN rose 2.19 percent on
Monday to 9,533.52, snapping a four-day slide.

Foreign funds have been net sellers of more than $13.3
billion of Indian stocks in 2008, after investing a record
$17.4 billion last year when the BSE index rose 47.15 percent.

By 0330 GMT, Japan's Nikkei .N225 was up 1.3 percent,
Hong Kong .HSI was up 0.5 percent and Sydney .AXJO was
trading 0.6 percent higher. The Nifty futures traded in
Singapore SINc1 was up 0.8 percent. --------------MARKETS
SNAPSHOT AT 0331 GMT-------------------

INSTRUMENT LAST PCT CHG NET CHG S&P
500 .SPX 869.42 -0.39% -3.380
USD/JPY JPY= 90.33 -0.33% -0.300
10-YR US TSY YLD US10YT=RR 2.0712 -- -0.042
SPOT GOLD XAU= 876.15 -0.15% -1.350
US CRUDE CLc1 40.23 0.52% 0.210
DOW JONES .DJI 8483.93 -0.37% -31.62
-------------------------------------------------------------
STOCKS TO WATCH

* Banking stocks such as Bank of India (BOI.BO), State Bank
of India (SBI.BO) on growing expectations of deep interest rate
cuts.

* Electrotherm India (ELTH.BO) after the firm said its
board has approved spinning off its engineering business into a
new entity - Electrotherm Engineering & Projects Ltd.
[ID:nBMB004068]

* Rolta India (ROLT.BO) after the software services firm
said it has acquired U.S.-based Piocon Technologies, which
provides solutions to oil and gas refineries.

FACTORS TO WATCH
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* FOREX-Dollar dips vs euro on Middle East concerns
[FRX/]
* Oil rises for third day above $40 on Middle East
[O/R]
* GLOBAL MARKETS-Gaza violence lifts oil, global stocks mixed
[MKTS/GLOB]
* US STOCKS-Market falls on Dow Chemical news, economic worry
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Sumeet Chatterjee & Sowmya Kamath; Editing by
Charlotte Cooper)